HART December 2015 Financial Status Update

From HART, January 5, 2016

HART CEO and Executive Director Dan Grabauskas answers community questions about rail transit.

QUESTION:

How much are higher construction costs adding to the overall cost of the rail project?

DAN GRABAUSKAS:

HART estimates that construction cost escalation will add $240 million to the cost of the rail project. HART originally used an average of 4.5% per year rate of construction cost escalation in 2012 when it presented its financial plan to the Federal Transit Administration. The actual construction cost escalation for Oahu for years 2013 and 2014 has averaged 10.3% per year, more than double the original estimate. Based on most recent cost data, the estimated construction escalations for Oahu are projected to be 12%-15% for 2015.

So it's projected to be more expensive than originally estimated to build the remainder of the rail project.

PBN:  Honolulu rail agency says rising construction costs to add $240M to project's tab